How to Calculate Percentage Change on Excel

Are you looking for an easy way to calculate percentage change in Microsoft Excel? Whether you’re working on financial reports or analyzing data for a business presentation, knowing how to calculate percentage change is an important skill. Luckily, Excel has a built-in formula that makes it easy to calculate percentage change between two numbers. In this blog post, we will walk you through the step-by-step process of using Excel’s percentage change formula.

What is Percentage Change?

Before we dive into calculating percentage change in Excel, let’s briefly discuss what it is. Percentage change measures the difference between two values as a percentage, relative to the original value. It is particularly useful in financial analysis to measure changes in stock prices, profits, and other important metrics over time.

Formula for Percentage Change

Excel has a built-in formula that calculates percentage change between two numbers. The formula is:

=(New Value – Old Value) / Old Value

This formula calculates the percentage change between the new value and the old value. Here’s how to use the formula in Excel:

Step-by-Step Guide

Step 1: Enter the Old Value

In a blank cell, enter the old value that you want to use for the calculation. For example, if you want to calculate the percentage change in sales for the month of January, enter the sales value for January in the cell.

Step 2: Enter the New Value

In a different cell, enter the new value that you want to use for the calculation. Using our previous example, enter the sales value for February in a different cell.

Step 3: Apply the Percentage Change Formula

In a third cell, input the percentage change formula. In the formula bar, type the formula: =(new value – old value) / old value.

Step 4: Format the Result as a Percentage

Once you’ve applied the formula, the result will appear in decimal format. To format the result as a percentage, select the cell, and click on the “Percentage” button in the “Home” tab.

And that’s it! You should now have the percentage change between the two values.

Conclusion

Calculating percentage change in Excel is an essential skill for business professionals and financial analysts. By following the simple steps outlined in this guide, you can easily calculate percentage change in Excel. Whether you’re working on a financial report or preparing a business presentation, this formula will come in handy.

Tips for Working with Percentage Change Formula

When working with percentage change formula in Excel, here are a few tips that will make the process easier:

• Always double-check your entries to ensure that you’re using the correct values for the calculation.
• Use parenthesis to enclose the values in the formula to ensure accurate calculations.
• When using negative values, the formula automatically assumes that the change is negative. For example, if the old value is 100, and the new value is 80, Excel will return -20% change.

Additional Resources for Excel Formulas

Excel has an extensive library of formulas that can help solve complex mathematical problems quickly and accurately. Here are some additional resources for learning more about Excel formulas:

• Microsoft Office Support: This resource contains tutorials, guides, and articles on a variety of Excel topics, including formulas and functions.
• Online Courses: Several websites offer free and paid courses on Excel formulas, including Udemy, Coursera, and LinkedIn Learning.
• Excel User Forums: Joining Excel user forums can be an excellent resource for getting answers to specific formula-related questions. Some popular forums include Mr. Excel and Excelforum.

Summary

Calculating percentage change is a handy tool for anyone working with data in Excel. Whether you’re analyzing financial results or tracking performance metrics, knowing how to calculate percentage change can help you make more informed business decisions. By following the step-by-step guide outlined in this article and practicing with different examples, you’ll become a master at calculating percentage changes in no time.

FAQ

Here are some of the most commonly asked questions related to calculating percentage change in Excel.

Q: Can I calculate percentage change between more than two values using this formula?

A: No. This formula only calculates percentage change between two values. If you want to calculate percentage change between more than two values, you’ll need to use a different formula or create a custom formula.

Q: What format should I use for entering values in Excel for percentage change calculations?

A: Always use the same format for entering values in Excel when calculating percentage change. For example, if you’re working with currency values, ensure that they are all formatted as currency. If they are entered as text or percentages, you’ll need to convert them using the appropriate conversion formula before using the percentage change formula.

Q: Can I use this formula to calculate percentage change for negative values?

A: Yes. The formula works with negative values, just like positive values. If the result is a negative percentage, Excel will automatically assume that the change is negative.

Q: Is it possible to calculate percentage change over a specific time period in Excel?

A: Yes. You can use Excel’s built-in functions to calculate percentage change over specific time periods, such as days or months. To do this, you’ll need to use functions like DATE or YEAR to calculate the time period, and then use the percentage change formula to get the percentage change.

Q: What if I receive a “Divide by zero” error when I apply the percentage change formula?

A: If you receive a “Divide by zero” error when applying the percentage change formula, it means that the old value is zero. To avoid this error, you’ll need to ensure that you’re not dividing by zero. One way to do this is to add a small value (such as 0.0001) to the denominator to avoid division by zero.